Zydus Wellness Q4 Results Review - Market Share Loss In Malted Food Category A Drag On Volumes: ICICI Direct
Zydus Wellness would be expanding overall distribution network to 3 million retail outlets.
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ICICI Direct Report
Zydus Wellness Ltd. saw sales growth of 11.4% led by 7.8% pricing growth.
Volume growth was 3.5% in Q4; FY23 volume growth was 4.8%. Ebitda was at Rs 144.6 crore, up 2.2% YoY, with margins at 20.3%.
Zydus Wellness' consequent adjusted profit after tax was at Rs 145.3 crore.
Key triggers for future price performance:
With the softening of crude, aspartame, palm oil prices and price hikes taken in last one-year, gross margins to inch up to 280 basis points in the next two years. However, milk prices continue to remain elevated.
Though Zydus Wellness is gaining market share in prickly heat powder and glucose powder category, it is losing market share in MFD (Complan) category, which is a drag on growth • Zydus would be expanding overall distribution network to 3 million retail outlets. Distribution expansion along with innovation is key for successful execution
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